4:58pm: Australian shares have closed at a new six-year high, notching up a seven day winning streak as the big four banks lifted the index and investors reacted to a mixed bag of June quarter company updates.

The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index both added 0.2 per cent on Thursday, to 5585.2 points and 5576.8 points respectively, as local shares took muddled cues from offshore. Major equity markets in the United States, Europe and Asia were mixed.

If the market gains on Friday it will mark the longest consecutive run of gains in almost one year.

UBS has trimmed its year-end target for the ASX 200 from 5700 points to 5625 points based on subdued expectations ahead of the August reporting season when most companies deliver final full-year results for the 2014 fiscal year.

“Expectations for aggregate earnings per share growth in FY14 now stands at 13 per cent, year-on-year, compared to 14 per cent about six months ago,” UBS Australian equity strategist David Cassidy said.

4:10pm:RISE (refugees, survivors and ex-detainees) has cut ties with National Australia Bank in its capacity as a banking customer because the non-profit says that one of NAB's investment arms traded in Transfield Services stock.

RISE objects to Transfield's detention centre contracts. NAB responded that it had not directly invested in Transfield for its own benefit, according to the RISE statement. "[NAB] said that the decisions to invest in Transfield were not taken by NAB itself, but rather by investment managers who were bound to act solely based on financial considerations." RISE went on to say that was not justification enough.

"We have reached the view that it is untenable to stay with a bank that cultivates an 'ethical' image but involves itself financially with policies that degrade the mental and physical well-being of persecuted people. We have therefore ended our own involvement with NAB."

Newcrest has handled its latest writedown announcement much more skilfully than it did a year ago when it was engulfed by a disclosure debacle, but the news about its giant Lihir gold mine is still not good.

After being engulfed in a disclosure debacle in June last year that resulted in it paying penalties of $1.2 million, Newcrest has kept a tight lid on its latest writedown announcement.

The group put new internal disclosure processes in place after last year’s crisis, which centred on selective briefings the company gave to stockbroker analysts.

One of them imposes a two-week "blackout" period leading up to regular results and reports, and any special events that the company’s new disclosure committee considers market-sensitive.

3:44pm:The ASX is currently ahead 0.2 per cent today, putting it on track to notch up its 7th consecutive session of gains to equal the market's longest winning streak in a year.

Shares last rose for seven consecutive sessions over the Easter holiday period in April.

The last time shares rose for more than seven sessions without a breather was the rally at the end of the 2013 financial year, when the market gained for the 15 sessions in a row up to and including August 1, 2013.

3:15pm:Dry weather is likely to persist across eastern Australia for the next three months, the Bureau of Meteorology (BOM) said on Thursday, exacerbating stress on cattle and adding to concerns that wheat yields could suffer in the world's third largest exporter.

The chance of below median rainfall between August and October is greater than 60 per cent in northern Queensland, southern New South Wales and most of Victoria, the BOM said.

The dry outlook threatens wheat production across the Australian east coast, analysts said.

3:06pm: Over at afr.com, Jonathan Shapiro has this report on the shale gas revolution:

The opportunity that gushed from technological innovation that some argue as more profound than the internet may have passed investors by, according to Chad Padowitz, the chief investment officer of Melbourne-based global equities fund Wingate.

Those chasing the dream today may be left with nothing more than empty holes and empty pockets. Padowitz, who has recently returned from a field trip to Texas, says the US energy sector sees a “tipping point where production growth must slow, and the existing inventory of declining wells will exceed the growth rate of new wells and production”.

2:23pm:Saudi Arabia is keeping as much as $40 billion of foreign investor capital waiting as it decides which institutions can participate in the Arab world's biggest stock exchange.

The regulator will publish rules next month allowing participation for the first time by qualified foreign financial institutions starting in the first half of 2015, the Capital Market Authority said on its website Tuesday. The announcement sent the benchmark Tadawul All Share Index to its highest level since May 2008.

The world's biggest crude exporter is opening one of the most restricted major stock exchanges as King Abdullah pushes to diversify the economy from oil and create new jobs. Entry to MSCI Inc.'s benchmark emerging-markets index could mean $40 billion of inflows to Saudi stocks, said Rami Sidani, the head of frontier markets investing at Schroder Investment Management in Dubai. Buying shares may be restricted initially to long-term institutional investors, according to Shuaa Asset Management.

"They have been very clear about what they are looking for, which is very large institutional investors, sticky money with long investment horizons," Amer Khan, a senior executive at Shuaa in Dubai, which oversees more than $300 million in assets, said by telephone Tuesday. "They have seen what happened during the financial crisis and they want to limit hot money."

1:44pm:MH17 the musical? A gameshow, play or movie based on the horrific plane crash? As appalling as that sounds this could actually happen as it looks the Malaysia Airlines tragedy is about to become the centre of a local trademark stoush.

Less than one day after the doomed Malaysian Airlines flight MH17 crashed into fields in eastern Ukraine killing all 298 passengers aboard, a mysterious company in Kuala Lumpur applied to the Australian Trade Marks Office to have the term ‘‘MH17’’ trade marked.

According to documents obtained by Fairfax Media, Remit Now International has applied for a trademark for ‘‘MH17’’ for Class 41 services which covers a huge swathe of usages including films, online games, game shows, video games, plays, musicals, magazines and educational texts.

1:21pm: Every now and then you read something truly terrifying in a seemingly innocuous analyst report.

This is today's, from Credit Suisse's Damien Boey and Hasan Tevfik:

"It would only take 100bps" - [1 percentage point] - "of rate hikes to bring the debt-servicing ratio back to GFC highs, which we view as unsustainable."

That's their take on the Reserve Bank of Australia and the interest rate outlook and part of the reason why they think if the RBA did raise, the peak would be below 3.5 per cent. Right now rates are at 2.5 per cent.

Borrowers can't afford rate rises like they used to because mortgages are bigger in dollar terms.

1:00pm:Australian house prices aren't overvalued yet, but negative gearing tax breaks have added almost 9 per cent, or $44,000, to current average house prices, financial group Moody's Analytics has reported.

While properties aren't currently overvalued, there are "worrying trends” that could come back to bite homebuyers when interest rates rise as rents and incomes have failed to keep pace with surging property prices, the report cautions.

Moody’s compared house prices with long term valuations – taking into account rents, income and the costs associated with borrowing, including interest rates and other charges - to assess whether the 10 per cent year on year rise in house prices in Australia's eight largest cities means property prices were overvalued.

11:29am:JPMorgan has raised its price target to $12.30 on Sims Metal Management from $11.80, staying overweight, following a target of earnings before interest and tax uplift of $240 million over the next five years.

"In what can only be characterised as an opaque industry, with high earnings volatility, management’s decision to present an 'ambitious but realistic' target is undoubtedly bold. What's more, management has set the target, 'without relying on external cyclical recovery or acquisitions' and also without incurring further significant restructuring charges or capital expenditure requirements," the broker says.

Just look at Lynas Corp, the deeply troubled rare earths miner and processor. Its share are in the middle of a good old trot, rallying another 10 per cent so far Thursday, bringing its gains to 50 per cent over the past six days trading.

One of the triggers just may be the deepening woes of US competitor, Molycorp. Earlier this week, ratings agency Moody’s downgraded its debt to Caa2, which is deep in junk bond territory. Like Lynas, Molycorp is struggling to bed down an expansion, which has caused all sorts of strife. Not only did the cost blow out but there have been ongoing operational issues as well.

10:59am:Newcrest Mining is set to wear another round of massive asset impairments, with the gold miner today warning it could be forced to write down the value of its assets by as much as $2.5 billion.

Barely one year after writing down the value of its assets by almost $6 billion, Newcrest revealed the pain for investors was not finished yet, with its Lihir, Telfer and Bonikro assets once again the issue.

Newcrest said operating cost assumptions were being revised at Lihir in Papua New Guinea, after running the plant expansion there for a full year.

Lihir was supposed to be another large, low cost gold mine to complement Newcrest's flagship Cadia mine, but has been plagued with operational troubles and now appears to be a higher cost operation than first thought.

10:56am:Insurance Australia Group has upgraded its full year profit margin expectations to its highest levels since the company listed on the Australian Securities Exchange in 2000, as benign weather and a lack of claims boosted the insurance giant’s bottom line.

IAG, the owner of brands such as NRMA and CGU, expects to table an insurance margin of 18 to 18.3 per cent, a substantial hike from the previously flagged 14.5 to 16.5 per cent range.

It is the fifth consecutive time that IAG has upgraded its full year insurance margin guidance.

10:45am:Morgan Stanley has reiterated its overweight call on AMP with a price target of $6 a share.

"Markets are driving a cyclical recovery in flows; The market has over-reacted to Life risks and margins are at cyclical lows; AMP can execute a low cost operating model; and wealth management can deliver positive jaws in normal markets."

10:33am:Deutsche Bank equity strategist Tim Baker has looked at the earnings season which begins next week and found that revisions to forecasts are weakening, mostly because of slack in the cyclical sectors.

10:19am: It may only be a small part of the group, but BHP Billiton and Anglo American are looking to sell their jointly owned manganese assets portfolio in South Africa and Australia, the Wall Street Journal reports. The assets include two mines in South Africa, one in Australia, and processing plants in both countries. BHP owns 60 percent and Anglo 40 percent of the operations, according to the report.

BHP has a host of other operations on the block, including some nickel assets.

9:54am:Sydney's median house price has smashed through the $800,000 barrier to reach an all-time high of $811,837, new figures show.

Last month's surge of 3.1 per cent brings the total house price growth for the 2013-14 financial year to 17 per cent, or $118,000, according to the Australian Property Monitors Quarterly House Price Report.

The latest quarterly increase is in line with the March quarter results but still considerably lower than the boom era 5.1 per cent recorded over the quarter ending December last year.

The senior economist at APM and the Domain Group, Andrew Wilson, said: ''December 2013 was the high watermark for Sydney's current growth cycle. However, the market continues to perform."

9:47am:Facebook Inc's fast-growing mobile advertising business helped drive a 61 per cent increase in revenue during the second quarter, beating Wall Street's financial targets and sending shares to a record-high in after-hours trading on Wednesday.

The world's No.1 Internet social network said on Wednesday that it saw increased interest from both advertisers and from users during the second quarter.

Facebook now counts 1.5 million advertising customers and the company's ad business saw strong growth across all of its geographic regions in the second quarter, Chief Operating Officer Sheryl Sandberg told Reuters in an interview on Wednesday.

9:45am: Three of the country's largest banks have slashed their fixed mortgage rates, fighting to win new customers by allowing borrowers to lock in longer-term interest rates of less than 5 per cent.

The Commonwealth Bank, National Australia Bank and Westpac on Wednesday became the latest banks to cut fixed rates, each giving customers the chance to secure historically low borrowing costs over the longer term.

CBA moved first, slashing its five-year loan to 4.99 per cent, a new low for the bank.

Within hours NAB and Westpac had responded by matching the CBA's five-year rate. NAB also cut the rate on its four-year loan to 4.99 per cent and its three-year product to 4.94 per cent.

For a five-year fixed loan with a balance of $400,000, the CBA's reduction lowers monthly repayments by $166 a month, RateCity said.

9:42am:New Zealand's central bank raised interest rates to the highest level in more than five years on Thursday but said it would now take a breather as it looked at the impact of its tightening and watched inflation in the economy.

The Reserve Bank of New Zealand lifted its official rate by 25 basis points to 3.50 per cent, as expected, the fourth consecutive rise in as many meetings.

It said rates would need to return to a more neutral level, but the economy appeared to have slowed amid falling commodity prices and moderate inflation.

9:39am: Macquarie Group has reported a drop in its operating group’s contribution to profit in the three months ended June 30, compared to a year earlier, but stuck to its full-year guidance to match its bumper 2014 earnings.

The soft first-quarter results were weighed on by units such as Macquarie Securities, which continues to suffer from weak equity trading volumes and lower volatility, Macquarie said in a statement ahead of its annual general meeting in Sydney.

The group’s capital markets divisions, including advisory division Macquarie Capital and Fixed Income Currencies and Commodities, had lower combined earnings in the quarter compared to the same period a year earlier.

Macquarie’s annuity style businesses, including Macquarie Funds and Corporate and Asset Finance, were tracking broadly in line with the same quarter last year.

30 years? No wonder FHB's have deserted the market. They don't want to pay $600-800K for a nothing house in a nothing suburb and then wait 30 years for it to pay off. That is if they don't get divorced, become disabled or just have a nervous breakdown from the 15hrs commute every week.

Commenter

LJ Hooker

Location

Date and time

July 24, 2014, 3:40PM

Haha love the name.

Commenter

DR

Location

syd

Date and time

July 24, 2014, 4:42PM

Any thoughts on why AGL price continues to stay down despite the announcement that the MacGen deal will not be thwarted? I am still trying to work out how the carbon tax repeal will affect the AGL profit!

Commenter

Rusty

Location

Sydney

Date and time

July 24, 2014, 3:32PM

The deal was already priced in that it would be successful.

Commenter

DR

Location

syd

Date and time

July 24, 2014, 4:43PM

Back on AWE @ $1.80 today, chart looks good to me!

Commenter

AWEsome trader

Location

Date and time

July 24, 2014, 3:27PM

My broker is expecting good numbers in next months report if that is any help!

Commenter

famous

Location

last words

Date and time

July 24, 2014, 3:43PM

Anticipating another big night on Wall Street, 2000 and 4000 in reach and we all know how the Americans love milestones. Take advantage and buy a few bargains at the close!

Commenter

Gordon Akman

Location

Date and time

July 24, 2014, 3:25PM

milestones or millstones?

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 3:40PM

yeah...no worries.

Commenter

no banks .. no party!

Location

Date and time

July 24, 2014, 3:51PM

Moodys says the Australian house prices are only slightly overvalued.This is a good reason to exit the property market.

Commenter

Luke

Location

Date and time

July 24, 2014, 3:21PM

Is this the same credit rating agency that rated sub-prime mortgages and credit default swaps in the US?

Commenter

Dr No

Location

Sydney

Date and time

July 24, 2014, 3:35PM

Dr_No: All rating agencies did that back in the day. What is your point?

Probably an error in judgement...bought Medusa at $1.72! Missed AMP at $5.25 trying for lower....

Commenter

Ox

Location

Kensi Pk

Date and time

July 24, 2014, 3:03PM

Gee the bulls are like snapping turtles today. You'd think they would be happy what with the market back to 2006 levels and all.

Commenter

Knackery

Location

Date and time

July 24, 2014, 2:59PM

Can't see the release re: flash PMI on HSBC's website. Can anyone link to it please?

Commenter

ajduffs

Location

Perth

Date and time

July 24, 2014, 2:56PM

Article @ 1.21 re interest rates:What would a rate hike do to the US, Europe, Japan and China debt servicing levels.Central Banks have backed themselves into a corner.

Commenter

MTD

Location

Darts Club

Date and time

July 24, 2014, 2:55PM

Oh dear fmg shorters have made the ants angry today. Short at $6. And their ore is low grade. Ya know what that means.

Commenter

Jim Chanos

Location

Date and time

July 24, 2014, 2:45PM

Goldman Sachs trying to push the punters into CTX Caltex at $24.25. . Gee it would be great if these urgers could get their tips into the market before the increase to $24.+ that has already happened.

Commenter

Pest again

Location

Lowood

Date and time

July 24, 2014, 2:43PM

Bulls boasting about going sideways for 8 years. Time for the sword.

Commenter

Matador

Location

Date and time

July 24, 2014, 2:42PM

Bear shorts LNG, CBA, WPL nope, no good.SBM days are back, bad trades all around coming from cranky bear hahahahah

Commenter

Snappy

Location

Turtle

Date and time

July 24, 2014, 3:24PM

And another sword slides into the bull's back.

Commenter

Matador

Location

Date and time

July 24, 2014, 3:46PM

New to the blog so please be gentle.

I bought SIR a year ago and see they are now in a trading halt for a proposed equity capital raising.

Was wondering what this might do to the share price in the next few days?

Commenter

fletch

Location

grafton

Date and time

July 24, 2014, 2:28PM

I am on BPT (Beach Energy) and was expecting a bit of upside today with SPI futures and oil both up but the share price is down!

How does this happen?

Commenter

surfer

Location

Date and time

July 24, 2014, 2:05PM

Has had a good run from $1.62 (last week). Upside is capped unless a good announcement forthcoming.Take profit... buy back in lower giving more margin for upside

Commenter

Ox

Location

Kensi Pk

Date and time

July 24, 2014, 2:58PM

Thanks Ox, will do!

Commenter

surfer

Location

Date and time

July 24, 2014, 3:21PM

Hazelwood the next day trader stock as their rope runs out on TON,lots of vol no news up 12% on 20 million+......but why?

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 2:00PM

@ Happy Trader "@Tim agreed although was just posting most recent.Short on FMG $4.90 was his call for average price for the last two years, so as he has never closed his final position he has erroded all his profits. I can know understand why he is mad all the time."

Don't forget the last fantasy JBH short @$24 too. ROLFLMAO

Commenter

Hugo

Location

Date and time

July 24, 2014, 1:40PM

Now now stop winding up people.

Commenter

Concerned

Location

Patron

Date and time

July 24, 2014, 2:36PM

Cheer up Hugo. you'll ge tit right one day. he he...

Commenter

Allan

Location

Prahran

Date and time

July 24, 2014, 2:38PM

Wrong bait. Try lures.

Commenter

Snapper

Location

Date and time

July 24, 2014, 2:40PM

Hugo have you seen someone about your obsession? It's not healthy at all. How about gamblers anonymous?

Commenter

Dr Freud

Location

Date and time

July 24, 2014, 2:57PM

Will you people get over your Allan fetish - it's boring! Make your trades - let him make his and move on!!!

Commenter

BTFD

Location

Date and time

July 24, 2014, 3:25PM

"China’s terrifying debt ratios poised to breeze past US levels "

Not long before interest payments will be higher than the growth. At that point default is a very high probability.

Housing boom!

Commenter

Allan

Location

Prahran

Date and time

July 24, 2014, 1:38PM

"It would only take 100bps" - [1 percentage point] - "of rate hikes to bring the debt-servicing ratio back to GFC highs, which we view as unsustainable."

Central banks only have themselves to blame. As if emergency low interest rates was ever going to do anything than inflate the global asset bubbles even more.

80% of littlelandlords are in the 35% tax bracket ie mums and dads who thought they would be property moguls.

Commenter

Fact checker

Location

Date and time

July 24, 2014, 3:23PM

yep

Commenter

Hugo

Location

Date and time

July 24, 2014, 3:27PM

Gee we were here 8 long years ago. What's changed? Oh yeah... I know... global debt and property bubbles are bigger this time. Bulls can't help themselves.

Commenter

Market historian

Location

Date and time

July 24, 2014, 1:16PM

Rocks in your end champ. Big ones.

Commenter

Mack

Location

Melton

Date and time

July 24, 2014, 1:30PM

And yet despite all of that extra cash flooding the system, inflation doesn't seem to be a problem. European economies and Japan seem more worried about deflation and are trying to forestall that by pumping in even more cash. Goes against everything in the economics textbooks. Eventually inflation is going to have to be allowed to break out to reduce some of that debt burden.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 3:18PM

The bull run might just be over, doesn't like the hump @ 5600!

I am thinking it is time for the big short!

Commenter

big al

Location

Date and time

July 24, 2014, 1:14PM

whats that mean for ARI @76c?

Commenter

Ding

Location

Dong!

Date and time

July 24, 2014, 1:56PM

Good luck with that!

Commenter

ckikey

Location

Date and time

July 24, 2014, 2:00PM

Reading these comments, everyone is loving the bull.

I can't but help to think that the bear will have his day soon.

1. Inflation is rising.2. House prices are very high due to cheap money3. Rates can't stay this way forever. We will need to see a return to regular levels.4. Higher AUD from forecast rates increases will hurt here in Aus.5. Indices keep making highs in the face of geopolitical tensions.

Keep riding it while it's here, but I have my eye on signals that indicate that a correction is upon us.

Commenter

Scott

Location

Sydney

Date and time

July 24, 2014, 1:13PM

all of those points have the ability to deflate and ease over time if managed correctly.

Commenter

brian

Location

Date and time

July 24, 2014, 1:43PM

guys like buffett,soros and icahn dont know what the market will do 2moro...what chance have you ?? i reckon they will tell you it is at approx full value atm, and at these p/e's i agree

Commenter

no banks .. no party!

Location

where is the fear???

Date and time

July 24, 2014, 1:48PM

Join the back of the line Scott. Its a long line. A line of angry, depressed middle aged men, Harry Dent is one, oh, and Steve Keen is one. Steve Keen actually sold his house on his own incorrect advice, must be kicking himself now. But wait this time I think its different? Isn't it Scotty?

Commenter

You

Location

Mad?

Date and time

July 24, 2014, 2:41PM

Exactly what was said about Japan in 1990. 24 years later prices are back to 1984 levels.

Commenter

Musashi

Location

Date and time

July 24, 2014, 3:26PM

I'm not arguing either way, don't have money in housing or stocks right now, I trade forex and indices.

I'm just looking at the whole picture. It seems like big parts of the reason we have increased housing and market is because we have cheap debt and very low rates. Makes me feel uncomfortable.

Commenter

Scott

Location

Sydney

Date and time

July 24, 2014, 3:38PM

"Australian house prices aren't overvalued yet, but negative gearing tax breaks have added almost 9 per cent, or $44,000, to current average house prices, financial group Moody's Analytics has reported."

No matter how much house prices in Australia increases you can bet one thing, they are never overvalued.

Only other countries have overvalued house prices. Sydney is now higher than London, and Adelaide is higher than Tokyo, but no worries mate, she will be alright.

Commenter

Viking

Location

Sydney

Date and time

July 24, 2014, 1:11PM

Up 2 points kick ass!! rally after new records on wall st.ASX hits 5580 after starting 2014 at 5368..but aside the good stocks keep steaming ahead and the dogs only "bark" louder.

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 12:49PM

LYC: "rallying another 10 per cent so far Thursday, bringing its gains to 50 per cent over the past six days trading."

Premium ore from increased BHP supply and other sources is pushing lower grade ore out of the market.

Oh and for the record, as posted, $3.90 per share from closed short positions of fmg, and 70c/share unrealised from the current open position.

Gift.

Commenter

Allan

Location

Prahran

Date and time

July 24, 2014, 12:44PM

i voted for posts with the word "oh" screened out..but now they are back...aw rats whers that oh filter..

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 1:23PM

Where is the Liberator shorting the index?

Commenter

AR

Location

Sydney

Date and time

July 24, 2014, 12:41PM

"Short on FMG $4.90 was his call for average price for the last two years, so as he has never closed his final position he has erroded all his profits."

He he.... comedy reel alright.

Making up numbers to make yourself feel better is a little sad.

Or can you post links? Nah didn't think so.

Commenter

Allan

Location

Prahran

Date and time

July 24, 2014, 12:33PM

On the subject of higher house prices there's this story of an OAP in a nursing home being hit with a big pension reduction after 2 years due to the value of his house now being counted towards the pension assets test. He now can't pay his care fees. If you have a parent in a similar situation you should be warned. http://www.smh.com.au/money/planning/my-fathers-pension-has-been-cut-in-half--what-can-i-do-20140717-ztwxs.html

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 12:32PM

It appears the older gentleman is in an age care facility since a few years back, but he still owns a house. Maybe better to sell the house and stick the monies somewhere where the sun does not shine. His pension would hence be uplifted.

Commenter

Viking

Location

Sydney

Date and time

July 24, 2014, 12:39PM

Why isn't he renting the place out. Then neither the income received or the asset itself would count towards his pension

More likely, the adult family members are in the house rent free and aren't willing to make up the difference

Commenter

Nick from Sydney

Location

Date and time

July 24, 2014, 12:49PM

So in true Australian style the expectation is I pay for this old guys care facility, while the family sit around in his house waiting for him to die and they get the house. Seems perfectly reasonable that he can sell it to look after himself

Commenter

Wwwish Lion

Location

Melbourne

Date and time

July 24, 2014, 1:05PM

What should we be warning people about Mitch? That if you are in a position to fund your own retirement you should be obliged to do so instead of relying on welfare? God forbid. Your comment "He now can't pay his care fees" is completely false. He just wants the government to do it instead.

Commenter

Sticks

Location

Date and time

July 24, 2014, 1:08PM

@Nick I am not aware of any provisions in the Age Pension Assets & Income test that exclude income from rental property and the property itself from the tests UNLESS the house is still the principal residence of his spouse or carer.@Viking you are aware of the distress selling their house can cause to an elderly person.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 1:14PM

I am aware of the distress selling their house can cause to an elderly person. However, there is very effective medication for distress.

Commenter

Viking

Location

Sydney

Date and time

July 24, 2014, 1:25PM

And before you all jump up and down saying he should sell the house, perhaps the house is in poor condition and wouldn't fetch a fair value. No-one wants to give a property away. As people get older their ability to maintain property drops right away.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 1:27PM

I made the original post to warn you of the situation that you could face with your own parents and even for yourselves. Let's see if when the time comes in your own family the solution you decide on is what you are suggesting here. The chances are it won't be. Too hard-hearted and likely to cause a great deal of family distress. Tell your wife that you are going to sell her mother's house, your wife's family home, and see what reception that news gets. How comfortable is your couch.One solution is a reverse mortgage to pay the fees. Another is to rent the property out. In both cases there are funds available but the property is still held.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 2:25PM

The only way the house can be excluded from the assets test is if he moves back into it. And any rent is income tested.

Mitch, your stress argument is ridiculous! His son has POA so can sell it for him and even if he didn't, a redutable REA would do.

As someone said, he wants taxpayers to fund his retirement. Its selfish people like him who keep the pension low for people who truly need it!!!

Commenter

Life Is Good

Location

The Real World

Date and time

July 24, 2014, 3:15PM

@Life, the stress I was referring to was the emotional stress of parting with the family home. It's easy to sell a house, just call an agent. It's not so easy to part with part of your life, even at the end and may hasten the end. One day that is a decision you will face. How will you go.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 3:26PM

The point is Mitch, that this person is in a position to fund their own care and you have even given a couple of reasonable options to do so. This is a great example of why the family home should be assessed. The issues you talk about of selling the family home are ridiculous. Most people just accept the reality of the situation and do what they have to do. It's called being a responsible grown up.

Commenter

Sticks

Location

Date and time

July 24, 2014, 3:28PM

@Sticks, and the couch for you. Sometimes old people will resist with every fibre in their being going into aged care in the legitimate fear that their house will be sold from under them. Imagine the distress that causes.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 3:45PM

If these old people sold their houses and funded their own care it would be great, less tax money wasted on a person able to fund themself, and more property on the market easing the prices.

Commenter

Wwwish Lion

Location

Melbourne

Date and time

July 24, 2014, 3:45PM

Mitch, I'm not sure what warped world you live in, but any elderly relatives I have had move into aged care/retirement homes just accept that selling the home is what has to be done and get on with it. If somebody wants to hold onto their home that is fine as long as they fund their own care/retirement. If there is a means for people do so then it shouldn't be left to the taxpayer. Especially if it means having a home that isn't being rented and shouldn't have anybody living in it. Money isn't free Mitch, somebody always pays.

Commenter

Sticks

Location

Date and time

July 24, 2014, 3:57PM

More on the growing rort that is happening to aged-care: Ripping off my fellow older Australians, yeah gotta get me some of this action. http://www.abc.net.au/news/2014-07-10/kohler-retirement-village-rorts-the-booming-national-scandal/5584412 These companies are a growing feature on the ASX and will become much more prominent as the baby-boomers regress

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 3:59PM

Don't know if you'll see this now but as long as you take a loan on the aged care bond and don't ever pay it off (can be $1) then it doesn't count. Obviously goes on tax return but excluded from centrelink calculations

Fiserv officer at Centrelink will walk them through the process, they are a fantastic service

We did this with my mum

Might be too late for these people now, place only has to be rented for a week but needs to happen in that first 2 years

Post July 1 might have changed things though this person sounds like he would have been covered under old legislation

Commenter

Nick from Syd

Location

Date and time

July 24, 2014, 4:00PM

Enjoying the ride on RIO, $65.00 is still not expensive.

Get on!

Commenter

peter allen

Location

i go to RIO

Date and time

July 24, 2014, 12:27PM

Will battle to go much over $65. Good play was short FMG & long RIO since last Friday into the PMI dump today having regard to the drop in fe price & difference between the Dahlin futures & physical price of 62% fe.. Close out FMG prior to 11.45am today when PMI data drop & go long. Then close both longs out at 12.15pm when mkt comes to senses. A lot of players do the latter. Check out the volumes spikes of both stocks around 11.45am.

Commenter

Seb Gonzo

Location

New Farm

Date and time

July 24, 2014, 2:00PM

IAG will face some premium decline as new technology in cars makes car insurance less of a must have. If the risk is less then they will have to charge less otherwise smaller players ill take their customers. IAG got a free kick from the ACCC by being allowed to take over Wesfarmers Insurance. IAG is also facing their worst nightmare if price aggregator sites are allowed access to their premium pricin. IAG was smashed in the UK by these sites so consumers can only hope that the Murray review gives consumers what they need to get transparent pricing

Commenter

Richo

Location

Melbourne

Date and time

July 24, 2014, 12:16PM

@Richo that would require that we have a gov't interested in protecting consumers against the rampages of the finance sector. The refusal to hold an RC into the CBA and the forcing through of changes to FOFA show that he have a gov't that couldn't give a hoot about consumers.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 12:51PM

AZV curse your breakout! I was getting around to you.

Commenter

Happy

Location

Trader

Date and time

July 24, 2014, 12:00PM

possibly another "hoax" takeover rumour about?but happy to see the boost,decent company but some hype without foundation this year.

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 12:44PM

Agreed. Always favoured CAJ. Held both last FY. CAJ has made me money every time I have gone for a run with her.

Commenter

Happy

Location

Trader

Date and time

July 24, 2014, 1:08PM

Today's graph looks a lot like the flight of a fiddlers elbow.Do the graphologists have a phrase for this type curve ??

Commenter

Pest from the west

Location

Lowood QLD

Date and time

July 24, 2014, 11:55AM

It looks like it's in the early stages of a "Bart Simpson haircut". The graph of the output from my solar panels often looks like that on a day when the sun keeps getting obscured by cloud then breaking through. As the sun breaks through there is a real surge in output.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 12:00PM

An uptrend...

Follow the troughs up with a line connecting and when the price breaks down through the line you could anticipate a change down.

The day trader's friend (the trend).

Commenter

It's All About Making Money

Location

Lennox Head

Date and time

July 24, 2014, 12:09PM

if u look at an hourly chart, there is a trend line break at around 85. price has tried to push up thru it several times now but failed.if u project the price from the high down to the trendline, u end up with a target at about 5510. Lets watch it and see how it goes over the next couple of days.

Commenter

J

Location

syd

Date and time

July 24, 2014, 12:26PM

Is there a chance Bruce Wayne has been caught up in today's graph? If that is not Batman's call sign at around noon today then the Joker must be playing games.

Commenter

Pest again

Location

Date and time

July 24, 2014, 2:35PM

11.42am - G8 Education

Tend to agree with this sentiment. There are lots of parents who can't get daycare out there and GEM keep procuring money making acquisitions. I am in and keep adding!

Commenter

GEMma

Location

Date and time

July 24, 2014, 11:50AM

Agree, I got in at $3.24 and am a very happy investor. Great company.

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 12:03PM

With unemployment continuing to rise there are lots of parents who won't need daycare. I think people have gotten hold of the wrong end of the stick with the PC report on childcare with its recommendation to increase the number of places and spend another $1billion. .The govt's objective is to cut costs and childcare benefits are a big cost.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 12:05PM

Holding this one also. Very impressive so far.

Commenter

Ka-ching

Location

Sydney

Date and time

July 24, 2014, 12:26PM

With all due respect @ mitch, this sort of post does not do justice to the company and the original post. There is no evidence for what you are saying here that will affect GEM. Punters have a hard enough job picking winners and this biased political comment does not help the genuine investor!

Commenter

GEMma

Location

Date and time

July 24, 2014, 12:48PM

@GEMma just putting my point of view based on the express intention of this gov't to cut, cut, cut and not interested in new expenditure, except perhaps on nannies who won't be based in childcare centres. If you think you know better then go with your conviction and good luck.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 1:17PM

Whats going on with Sydney's house prices?

Still no crash? Hugo!!! Where are you pal?

Commenter

Greedy

Location

Little Landlord

Date and time

July 24, 2014, 11:42AM

Tim - great to see you are upholding the fine traditions of the Interneterati and completely ignoring the facts. Have a look left of this column and check out the recent house price rises, then look at today's article on Moody's study of house prices which they consider to be "affordable". Of course, interest rates can change, but who in their right mind would suggest big changes are likely in the foreseeable future?

Oh, the Interneterati, I guess......

Commenter

Foresooth

Location

Canberra

Date and time

July 24, 2014, 11:41AM

Any chance of actually reading the comment before writing nonsense? It is a cut and paste so maybe you can enlighten me as to what facts I'm ignoring.

Commenter

Tim

Location

Date and time

July 24, 2014, 12:04PM

"interest rates can change, but who in their right mind would suggest big changes are likely in the foreseeable future?"

Me. Once we enter a rate rising cycle, they will move up quickly. Have a look at the Central Bank of NZ for evidence of what could quite easily happen.

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 12:35PM

A flat day but that is good when the market is at 5 year highs.

Not a lot of volatility in my usual day trades, but can't have everything your own way.

Shorters would gladly accept a flat day I am sure!

Commenter

satisfied trader

Location

Date and time

July 24, 2014, 11:41AM

You just know you are having a bad day when SBM is your best performer!

Commenter

barbara

Location

Date and time

July 24, 2014, 11:35AM

ditto QFX. Long term holder of this dog and have contemplated selling out a number of times. Glad I didn't, might still end up actually making some money on it.

Commenter

doglover

Location

Date and time

July 24, 2014, 12:10PM

Can't believe my luck in selling NCM yesterday. Considered selling down in SMSF as well but didn't. Win some, lose some. My wife will think i am gifted...you know that gold mine you bought late last year, you sold it yesterday and guess what?

@doglover, SLX was in a trading halt yesterday, very hard to sell under those conditions ;)

Commenter

Wwwish Lion

Location

Melbourne

Date and time

July 24, 2014, 12:37PM

Funny how Nathan Bell published an article 2 days ago to BUY SLX !!!

Commenter

MrT

Location

Melb

Date and time

July 24, 2014, 12:37PM

@wwwishlion. I forgot about that. So then the people that sold right before the trading halt would be thanking their lucky stars ;-)There are few things worse (in investing, not life) than watching your hard earned getting wiped out in the blink of an eye

Commenter

doglover

Location

Date and time

July 24, 2014, 1:05PM

This excitement about increasing house prices is beyond me. Unless you sell and buy somewhere smaller, more remote and thus cheaper, the increase is actually costing you in terms of higher value-based rates & taxes. And when you come to sell and buy somewhere else you will pay higher agent's commissions and stamp duty. The only people who will be better off are your kids who will inherit a more valuable property. But you have to die first.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 11:32AM

While some real estate investors might be cheering the over-valued housing market, it's really bad news for this country and our future. When young families can no longer afford a house and thus delay childbearing and maybe have fewer children than they otherwise would, well that will cause a real disaster in the long run since low birthrates is the single biggest threat to our civilisation.

Sure, other cities around the world are suffering similar threats, New York, Vancouver, London, Toronto, etc. But it's especially damaging here given that a third of our population live in either Sydney or Melbourne.

The housing bubble is one of the biggest geopolitical threats to Australia.

Commenter

Dr No

Location

Sydney

Date and time

July 24, 2014, 12:01PM

Correct Mitch. In terms of the family home (owned outright or negligible mortgage) you actually benefit more if prices crash because you would then need less capital to upgrade to a better one. Similarly, prospective buyers would want a crash as well. But property investors of course want prices to skyrocket. Given that it's investors that are likely to be most vocal, it's their response (excitement) we get to hear of the most and they are also the ones most likely to try to manipulate the trend. I would suggest the great majority of Australian's would prefer to see a steady decline over 10 years (rather than a sudden crash) as that would provide the best benefit without other immediate economic repercussions.

Commenter

Gareth

Location

Sydney

Date and time

July 24, 2014, 12:11PM

Feeling like a "sell" daybut just dont wanna let goonly stocks i could bid adieuare down and looking bluethe others are reaping haybut its coming up to divd daylets see what janet or glenn have to say?

Commenter

BearsghapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 11:24AM

Nice job BSB! It is a poet's day. Listening to Mr Morrison at the moment and he is saying: "...When you don't meet a chancer there'll be days like thisWhen all the parts of the puzzle start to look like they fitThen I must remember there'll be days like this...(Days Like This by V Morrison)

Commenter

It's All About Making Money

Location

Lennox Hd

Date and time

July 24, 2014, 11:54AM

NCM

The workers on the ground are doing a great job of decreasing AISC.

Cadia Valley AISC $304.

I would mothball the PNG assets (Lihir and Hidden Valley) until a long and hard review is completed.

Non cash write downs as expected. Wonder why a lot of the big miners haven't been as harsh.

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 11:18AM

Oops forget to mention I'm a long suffering shareholder! They will be opening a McDonalds on Mars when I break even.

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 11:25AM

Everyone wants a piece of the Sydney construction boom bonanza! Workers at Barangaroo have just walked off the site and want more money ...

Commenter

Dr No

Location

Sydney

Date and time

July 24, 2014, 11:11AM

So if IAG is reporting its best insurance margins since listing in 2000 does that mean that we can expect a substantial drop in premiums. PIGS MIGHT FLY. However the next time my policies come due if I can't negotiate a big drop in premiums then somewhere else I go. Too often policy holders just pay the "lazy tax" by staying with the one company when switching companies can provide a benefit due to introductory discounts..

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 11:09AM

Actually, yes premiums are indeed falling in many parts of Australia. The exceptions are high risk areas like Far North Queensland, and other flood / bushfire danger areas.

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 11:21AM

Mitch, I like to offset companies like banks, insurance, Telstra. If I keep my money in them, or use their products, I buy their shares as well. If they do something that affects me on one side, usually I benefit on the other. So for example, if my IAG insurance costs go up $200 in a year, usually my IAG shares go up $1,000. A nice little hedge :)

Commenter

Gareth

Location

Sydney

Date and time

July 24, 2014, 11:24AM

My dear old Mum's premiums with a lifetime of no claims in a low risk area went up 20%. Knocked it down to less than last years by hard talking & increasing excesses slightly.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 11:25AM

Good luck Irish I'm letting the dogs out at 6 bucks.

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 11:26AM

Also, I would add that their INSURANCE margins are performing well, but I think you will find that investment returns are well down due to the low yield environment we are in. So, NPAT is probably flat to down.

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 11:34AM

@ Mitch: what insurer is she with?

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 11:41AM

@Gareth you should be looking for the best of both worlds, lower premiums bringing in more policy holders because the company is more competitive and the higher income drives up profits, the share price & dividends.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 11:41AM

Ideally yes, Mitch. Hard to tell with my car insurance because the value of the car declines each year so the premiums tend to follow it or it at least offsets what any increase would have been. But my home insurance surprised me this year because it came down for the first time ever.

Commenter

Gareth

Location

Sydney

Date and time

July 24, 2014, 12:04PM

Good call by Intelligent Investor putting a Buy on SLX at 90 cents last week.

Commenter

Rabbit

Location

Date and time

July 24, 2014, 11:00AM

Stock market 'analysts' have as much chance at forecasting share prices as my grandmother. I still struggle to understand how these jobs actually exist. They get it right not because of some brilliant gift of foresight, but because the recommendation itself drives the market and the resulting herd mentally then pushes the stock in the desired direction. That is how it's done. Don't follow the recommendation. When price moves, get in early.

Commenter

AN

Location

Date and time

July 24, 2014, 11:29AM

The best speculation stock in ASX "SLX" down 46%. Keep silence.

Commenter

ps

Location

syd

Date and time

July 24, 2014, 10:56AM

What would the fall have been without all of the hype sparking buyer interest in the stock.

Commenter

mitch of ACT

Location

Date and time

July 24, 2014, 11:04AM

maybe it was a "short" call not long....so bummer if ya got it wrong.

Commenter

BearsghapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 11:17AM

"Morgan Stanley has reiterated its overweight call on AMP with a price target of $6 a share."

My fingers are crossed so I can finally get out. I must be the longest holding shareholder (never got free sandwiches either) almost approaching break even. Finally the dog is barking!

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 10:53AM

Haha, I am long in AMP @ $7.70. Bought the shares when I worked there back in 2006. I still think over the very long term it should be a good story, Superannuation is set to climb & climb. SMSF outflows are not helping I'm sure though.

Commenter

Irish Phil

Location

Date and time

July 24, 2014, 11:05AM

Good luck Irish I'm letting the dogs out at 6 bucks.

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 11:50AM

Here's a cut and paste for the comedy reel brian:

My post from June:

"Australia is an expensive place to do business, high costs and low productivity. House prices are going down and all the overgeared little landlords will default and trigger a series of huge write downs in the banks. AORD 2500 anyone?"

And guess what? The economy has deteriorated significantly since then, interest rates are a GFC emergency lows, house prices are still falling and the Spring selling season was a dud.

2500? is clearly predicated on the housing bust. The AORD is worth @ 3200 on earnings and a the housing bust could easily push it down to 2500.

And that would be @ 1997 levels whch is where house prices should be.

Enjoy!

CommenterAllanLocationPrahranDate and timeDecember 12, 2012, 5:27PM

Commenter

Tim

Location

Date and time

July 24, 2014, 10:53AM

nice onebut liken the market calls given on here as "a bowl of hot chips"always keep the salt shaker handy to take a "pinch"

ASX Historian, I don't know about WPL and FMG but our resident shorter was shorting at prices much lower for CBA and LNG. Don't forget to mention CPU @12.50, ORG @between $11 and $13 and MQG @~$40. I'll let the numerous out of the money long positions on SBM slide.

Commenter

Tim

Location

Date and time

July 24, 2014, 11:30AM

@Tim agreed although was just posting most recent.Short on FMG $4.90 was his call for average price for the last two years, so as he has never closed his final position he has erroded all his profits. I can know understand why he is mad all the time.

Commenter

Happy

Location

Trader

Date and time

July 24, 2014, 11:34AM

Went through the Prod Report from BDR,think they might be having a lend,ASIC now $1190 per oz??????????yet in the May AGM presentation ASIC stated as $725-775 per oz????leaving in difference $415 per oz of cost of production increase due to a bit of extra rain??? now come on don't be a SBM on us....which is it? hoaxed i reckon,disappointing as other South American producers are alot lower ASIC.

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 10:28AM

Yes, must admit I had to look twice, no wonder they have been quiet and the shorters having such a good time!

Commenter

Gold Balls

Location

Date and time

July 24, 2014, 10:45AM

Had a look also. Not so sure considering the production was way down because of excessive rain hence fixed costs remain same with no offset.

Full year AISC now rises to $855 which is because of 1st q plus lower AISC expected $655 in 2nd quarter.

Mining is very fickle also Duckhead continues to produce excellent assays.

All my own fault and opinion BUY in today at 0.56

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 10:46AM

What??? BDR not being as good as all the spruikers say??? That can't be right!

Commenter

DR

Location

syd

Date and time

July 24, 2014, 10:54AM

Absolute shocker of a quarterly report. I cashed out today. WIn some, lose some. I might buy back when and if, much lower.

Commenter

Yin or yang

Location

Date and time

July 24, 2014, 12:45PM

Cant get any bite at 0.56 will wait until others start to bail out bearing in mind Gold is down $6 on the day.

Y or YTo each his own good luck

Commenter

Harry Rogers

Location

Date and time

July 24, 2014, 1:15PM

looking at their statements, BDR might be a passable buy at under 50c due to the ridiculous volatility of spruikers. But the external factors are not working in their favour.

Commenter

DR

Location

syd

Date and time

July 24, 2014, 1:25PM

sorry AISC..bit of a slip there as they wont help.

Commenter

BearshapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 1:28PM

yeah yeah @dr we all wait for any trading you may post? cept all there is.....told ya so...boring really,whats the point of that.

Commenter

BeashapedBull

Location

Mugpunters Lounge

Date and time

July 24, 2014, 3:13PM

I haven't bought anything for months because I haven't seen any under valuing of good businesses on the ASX. Only been selling shares at the moment.

Commenter

DR

Location

syd

Date and time

July 24, 2014, 4:29PM

This time last year, this forum was telling readers that property was about to drop 30%. I see that Sydney prices have actuallt risen 17%!!

Oh well, what's a measily 47% betweern friends.....

Commenter

Life Is Good

Location

The Real World

Date and time

July 24, 2014, 10:25AM

someone with sufficient spare time should document the real howler predictions and present them a year or two later for a laugh. unfortunately, the doomsayers seem to have the most spare time and they're unlikely to document their own howlers.